P4.3-B budget released for cash transfer program

The Department of Budget and Management (DBM) has released P4.3 billion in cash allocations to the Land Bank of the Philippines for the release of P200 in cash grants to some 1.81 million households under the tax reform law.

In a statement, the DBM said it has given the Landbank P24.5 billion in obligation authority for the Tax Reform Cash Transfer Project (TRCT) of the Department of Social Welfare and Development (DSWD).

Of the amount, P4.3 billion in cash allocation has already been granted to fund the P200 in cash transfer for the first batch of TRCT beneficiaries this March. These comprise of 1.8 million existing beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) with Landbank cash cards.

“The immediate release of the aforementioned funds entitles 4Ps beneficiaries to receive their cash grants within the month. Notably, the entire annual TRCT cash grant shall be provided one-time per year to the intended beneficiaries,” the DBM said.

An obligational authority is granted by the DBM to a national government agency to certify that funds are available to cover the total cost of a project. Cash allocation, meanwhile, is the cash authority given by the budget department to cover an agency’s cash requirements.

Under Republic Act 10963 or the Tax Reform for Acceleration and Inclusion Act, a P200 monthly benefit (or P2,400 annually) will be distributed to the 10 million poorest households in the country to help cushion the impact of the tax reform measure on the prices of commodities.

This will be increased to P300 a month or P3,600 a year in 2019 and 2020.

For the first year of the TRCT, funds amounting to P24.49 billion have been lodged to the Landbank, which will distribute the cash benefits nationwide through ATM cards, over-the-counter or through conduit systems, like rural banks, NGOs and cooperatives.

According to the DBM, the second tranche of cash transfers under the program will also take place this March, but the intended beneficiaries will include 2.6 million 4Ps households without Landbank cash cards.

Another three million social pension beneficiaries will also get their cash grants starting April to May 2018.

About 2.6 million households who are new registrants to the DSWD’s National Housing Targeting System for Poverty Reduction or “Listahan” are also set to receive their cash transfers in August.